Recent research shows that by the end of 2022, the amount of money lost due to fraudulent activity in online commerce would have surpassed $41 billion. Surprisingly, it is predicted that this number will rise by a significant 16% YoY to a total of $48 billion by the end of the following year.
According to the findings of the investigation, the bulk of cybercriminals focuses their attention on North America. This region is responsible for the most fraudulent transactions in terms of value, and by 2023, it will account for more than 42 percent of all global eCommerce fraud.
Phishing, business email hacks, and socially engineered fraud are some of the methods that fraudsters may use in their attacks. Losses incurred as a result of online payment fraud encompass not just sales of digital items but also sales of physical goods, transactions involving money transfers and banking, and also purchases such as airline ticketing.
According to the findings of the research, another significant threat coming forward is the possibility of fraud with Buy Now Pay Later (BNPL). As a result of the delayed nature of BNPL payments, it is possible for thieves to commit several fraudulent transactions using stolen card information before the fraudulent activity is discovered. This presents a significant risk. As a result of this, the research suggested that BNPL providers should perform stringent identification verification at the time of onboarding in order to reduce the potential for these hazards.
In order for eCommerce merchants to be able to best combat the large fraud threats that are present, researchers propose that merchants should employ simple processes such as address verification, paired with risk-based scoring on transactions.